Update: This article has been updated to clarify that PYUSD is not exclusive to verified PayPal users and can be transferred across to general crypto users.
Since the launch of PayPal’s new stablecoin (PYUSD), opportunists, degens and potential scammers are already attempting to cash in on the hype with their own copycat tokens.
According to data from the decentralized exchange scanner DEX Screener, nearly 30 new token pairs sporting the ticker “PYUSD” have cropped up in the hours since the announcement.
Today, we’re unveiling a new stablecoin, PayPal USD (PYUSD). It’s designed for payments and is backed by highly liquid and secure assets. Starting today and rolling out in the next few weeks, you’ll be able to buy, sell, hold and transfer PYUSD. Learn more https://t.co/53RRBhmNHx pic.twitter.com/53ur2KmjU7
— PayPal (@PayPal) August 7, 2023
The look-alike tokens have been minted on various chains, including BNB Smart Chain, Ethereum and Coinbases’ newest layer 2, Base.
It’s important to note that the real PayPal USD token was created in November 2022 and can be verified at the following contract address.
PayPal stated that PayPal USD can be sent between verified PayPal and other compatible wallets. An analysis of the PayPal USD contract further confirmed that PYUSD does not have any limitations when it comes to transferring tokens. Finnish analyst Keir Finlow-Bates stated:
"I see nothing in the code that enforces that limitation - if you can get your hands on PYUSD you can transfer it using any decent Ethereum wallet, or even hand-craft transfer transactions yourself.".
The largest imposter PYUSD token, minted on Ethereum, has seen a staggering $2.6 million in trading volume since its inception just minutes after PayPal announced the launch of its stablecoin.
Despite surging more than 30,000% in the first eight hours, the token has since plummeted more than 66% from its all-time high.
One particular token had a slightly humorous take on PayPal’s stablecoin, opting for the name “PepeYieldUnibotSatoshiDoge.” The imposter token gained over 3,000% in four hours.
Many of the fake PYUSD tokens listed are likely “honeypots,” meaning that once an investor purchases the token, they cannot sell and have effectively given away their crypto.
Related: Paypal USD: Boon for Ethereum but not decentralization, says community
Unless investors are capable of auditing smart contracts themselves, they often will not find out the token is a honeypot until they try to sell their holdings.
Degens have been known to race to mint new memecoins to capitalize on trending stories and developments.
On Aug. 3, anonymous developers created an “LK-99” token in a bid to cash in on the superconductor craze.
A week before, on July 27, degens crafted up a roster of more than 50 UFO-themed memecoins as the United States Congress held a hearing where a whistleblower accused the U.S. government of covering up alien visitation to Earth.
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